OK, here is my dilemma. I have excellent credit but most banks seem to have a set interest rate for personal loans around 15%. If I finance the bike with a motorcycle loan my payments will be less but I have to have full coverage on the bike which is about $280 more per month. I'm only looking to spend around 6K. Give me some ideas.
2006-10-04 02:20:57 · 8 answers · asked by ? 1 in Business & Finance ➔ Personal Finance
If you have other collateral, use that instead of the motorcycle. Otherwise your either going to have to pay for the insurance (which is a sound financial decision) or pay the higher interest rate. It makes more sense to take the lower rate and pay for the insurance.
Good luck
2006-10-04 02:27:35 · answer #1 · answered by Adios 5 · 0⤊ 0⤋
Shop around for insurance for better rate. Considering you may (I hope not) need insurance in case something happens to it, it may be a better choice to spend money on insurance than on personal loan interest.
2006-10-04 02:29:53 · answer #2 · answered by spot 5 · 0⤊ 0⤋
Beware of CPA's who give advice contradicting the tax code. If you take the home equity loan and your tax preparer assumes that your mortage interest reporting form (1098) is properly deduct able, and you volunteer no further info, it will be written off if you file a Schedule A. If you are audited, the write off WILL be disallowed.
2006-10-04 08:11:25 · answer #3 · answered by Great Tax Info 2 · 0⤊ 2⤋
There is NO best way...there is simply the right and wrong way !
IF you finance ANY vehicle... the law requires YOU to have full coverage on it so the lender gets his cut when you crash it!
The laws are simple and in place only due to idiots before us screwing over their lenders due to accidents.
Do what the law says and you will not have any troubles!
Good Luck !
: )
2006-10-04 03:19:19 · answer #4 · answered by Kitty 6 · 1⤊ 0⤋
I would suggest a home equity loan, but the interest is NOT tax-deductible b/c it isn't used to improve the home.
2006-10-04 02:36:17 · answer #5 · answered by chh945s 2 · 0⤊ 0⤋
This is a very interesting topic
2016-07-27 13:19:40 · answer #6 · answered by ? 4 · 0⤊ 0⤋
$280 a month for insurance on a motorcycle????????No way!!!!!!!!!!! Your post is non-sense.
2006-10-04 02:26:18 · answer #7 · answered by Vinegar Taster 7 · 0⤊ 1⤋
Was asking myself the same thing
2016-08-23 08:08:01 · answer #8 · answered by ? 4 · 0⤊ 0⤋